Fundamental analysis · SEC EDGAR · as of 31/03/2026

Fundamental analysis of McKesson Corp

MCK · NYSE · Healthcare

Fundamental quality

REASONABLE

62

out of 100

McKesson Corp earns a fundamental-quality score of 62 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its growth (revenue +11.1%/yr). Its weakest area is its profitability (net margin 1.2%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

McKesson is the largest U.S. drug distributor: the logistics middleman moving medicines from drugmakers to pharmacies and hospitals. A business of gigantic volumes and razor-thin margins, but very stable: it's a three-player oligopoly.

What will shape its future

  • U.S. prescription volumes, which grow with aging and don't depend on the economic cycle.
  • Its millimetric margins: logistics efficiency is everything when you earn cents per box.
  • Litigation (opioids) and regulatory pressure on healthcare middlemen.

Breakdown by area

I.Growth
92

EPS growth: 43.8% · Revenue growth: 11.1%

II.Profitability
26

Net margin: 1.2%

III.Financial health
67

Net debt/EBITDA: 0.39x · FCF: 1.4%

Source: SEC EDGAR · as of 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 57 Healthcare companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 16%
Growthbeats 68%
Cash generationbeats 9%
Less debtbeats 79%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

McKesson Corp strengths

  • Growing earnings per share (43.8% annualized).
  • It has turned profitable after years of losses.
  • Revenue rising without interruption since 2021.
  • Revenue growing (11.1% annualized).

McKesson Corp risks and weaknesses

  • Its net debt has grown over the period.
  • Thin margins (net margin of 1.2%), little cushion for setbacks.

McKesson Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
2021238,228-4,5394,091822
2022263,9661,1144,0462,368
2023276,7113,5604,769922
2024308,9513,0023,8831,046
2025359,0513,2955,5489
2026403,4304,7625,7192,551

Between 2021 and 2026, revenue went from $238,228M to $403,430M (+69%) and net income went from -$4,539M to $4,762M (+205%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Dividend

$0.72

per share, yearly

8% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

Advertising

Want to invest in McKesson Corp?

Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.

Interactive BrokersGlobal markets

The serious investor's standard

Open free account →
WebullCommission-free

Popular in the U.S.

Open free account →

Investing carries risk of loss.

Is McKesson Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is McKesson Corp a good company to invest in?

In terms of business quality, McKesson Corp scores 62 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is McKesson Corp a profitable company?

McKesson Corp is profitable, with a net margin of 1.2%, though a thin one.

Does McKesson Corp have a lot of debt?

Not particularly. Its net debt is 0.39 times its EBITDA, a low level.

Is McKesson Corp growing?

Its revenue has grown 11.1% annualized in recent years and its earnings per share 43.8%, and without interruption since 2021.

Does McKesson Corp generate cash?

Yes. It converts about 1.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Was this page helpful?